In Brief
The State of Himachal Pradesh issued a 2004 policy allowing part-time class-IV employees who completed ten years of service to be converted to daily wage status, but expressly without back pay or consequential financial benefits. Years later, the High Court directed payment of monetary benefits from January 2007. The Supreme Court held the High Court erred: once the government clearly stipulated no past financial benefits, that principle must be consistently followed. Seniority counts from completion of ten years, but without arrears. The Court set aside the High Court's direction for back pay and allowed the State's appeals.
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